Introduction
In the present day, rapid technological development has made it necessary for large business companies to change the ways their factories work. Technologies such as automation, 5G, and Blockchain have made it clear to corporate leaders that they need to adopt some of them if they want to optimize their factories’ capabilities. Henkel, too, faces the need to decide on the adoption of new technology. In the present report, the analyst deals with the possible change in the case of Henkel and its history of technological development.
Findings and Discussion
Henkel’s first innovation dates back to 1876, when they released their first product in packets unseen before. Many years later, digital supply chain strategy, as well as the 5th generation cloud computing with its benefits of offloading to the cloud (Mehrabi et al., 2021), ensured Henkel’s dominance on the market. Cloud computing included a digital twin of sustainability on machine granularity, which Henkel builds along the entire value chain (Hinterhuber, 2022). Digital twins are the foundation of a smart factory and can be useful for cyber-security (Bécue et al., 2020; Scherrenbacher, 2019). Thus, Henkel has been an innovator since its inception and is using modern technologies today.
Henkel’s more recent technological development started in 2011, with the “Energy Management” certification process. Its purpose was to give information such as energy consumption to workers, so they could enhance energy consumption efficiency while democratizing the industry (Burnett & Lisk, 2019). For IT, Wonderware technology was implemented, able to create a human-machine interface (Mulyana et al., 2019). In 2017, Henkel first tested drones and Automated Guided Vehicles (AGV). AGV’s functions are unloading trucks, picking cargo, or working as assembly lines (Patricio & Mendes, 2020). In 2018, Henkel has chosen FourKites as the global provider. Therefore, Henkel’s technological development has been rapid, making the company modern and competitive in many fields.
In 2017, Henkel started keeping all of its information in a data lake. It allowed Henkel to analyze data in different domains: descriptive analytics, predictive analytics, and prescriptive analysis. These technological developments required corresponding know-how from the employees, causing the appearance of systematic online tutorials and a global upskilling program. Thus, Henkel’s technological advancement has led to some measures such as storing data and training personnel for digital transformation.
In the end, Dirk Holbach opts not to input too many innovations at once, as this can overload the employees. The analysis of AI systems can make complex industrial systems understandable (Daugherty & Wilson, 2018). Blockchain influences supply chain capabilities such as integration, coordination, and collaboration (Nandi et al., 2020). Meanwhile, 5G enables flexibility in managing network resources and cases (Walia et al., 2019).
If analyzed via Porter’s five forces principle, Henkel demonstrates strong positions in competition in the industry, being in the business for many years and adopting new technology constantly. The power of the customer’s force is taken care of too, with the company investing funds into communication with clients. The power of suppliers is limited, as Henkel has many of them. The weakest position Henkel currently has is in the threat of substitute products force, as there are other large companies able to offer similar products. However, the upside to this later position is that, due to large companies existing in the business, the potential of new entrants into the industry is low. Therefore, Henkel’s positions are generally strong, with the only threat being the long-established competition.
Conclusion
Thus, Henkel follows a strategy of slow change via modernization, putting emphasis on the need for pre-trained personnel. Certain measures have to be taken so that the factory works as intended. The nature of the planned change can be viewed as the right one, with digital twins and automation being the standard of work in the present day. As the present report concerns technology at factories, which are the main actors of the economy, it is valuable not just for Henkel, but for other companies trying to establish a business as well.
References
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